Friday, January 8, 2010

Small Business Lending Looking Good For 2010

Experts say 2010 will be a good year for small business lending. The last quarter of 2009 showed some good signs, as the SBA backed 37% more loans than they did in the 4th quarter of 2008.

Preliminary data reveals that during the three-month period, the SBA processed over 12,000 loans of more than $3.8 billion - a drastic increase from the year before with just 9,000+ loans of nearly $2 billion.

The Obama Administration's stimulus package is being credited for the success.

Despite the great improvements, small business lending is still lower than what it was when the economy was fully healthy. For instance, in the fourth quarter of 2007, the SBA backed more than 20,000 small business loans - nearly double the amount from our most recent quarter.

So progress is duly noted, but obviously more growth is needed for a full recovery.